Meet IQ extreme!

Invest and allocate assets like an expert

The selection of assets through a brand-new algorithm for mixed integer optimization.

Quantum Inspired

Portfolio optimization and asset allocation

Portfolio optimization is the process of selecting the best portfolio (asset distribution), out of the set of all portfolios being considered, according to some objective. The objective typically maximizes factors such as expected return, and minimizes costs like financial risk.

What is quantum-inspired optimization? Simulating the quantum effects on classical computers has led to the development of new types of quantum solutions. Quantum-Inspired Optimization algorithms exploit some of the advantages of quantum computing on classical hardware, providing a speedup over traditional approaches

Use case

For Portfolio Optimization --> Selection of a basket of N assets from a universe of thousands of financial instruments, optimizing return for given goals of risk, diversification and ESG scoring.

For Asset Allocation --> Transforming portfolio weights into a discrete asset allocation so that budget is completely adjusted and transaction costs are minimized.

Demo

Results Overview

For Portfolio Optimization --> Selection of a basket of N assets from a universe of thousands of financial instruments, optimizing return for given goals of risk, diversification and ESG scoring.

Problem

  • Selecting a basket of N assets from thousands of instruments is an exponential combinatorial problem, frequently solved sub-optimally.

  • Standard algorithms are suboptimal when dealing with fixed transaction costs and discrete asset allocation.

Quantum Inspired advantages

  • Fast calculation of efficient frontier for a universe of thousands of assets (example shown: EF of 10 assets from 480 in SP500).

  • Savings in transaction costs.

  • Added portfolio value with respect to standard optimization techniques.

  • Ideal for trading with lots that are an integer multiple of a standard lot size.

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Why Quantum Inspired here?

For Portfolio Optimization --> Selection of a basket of N assets from a universe of thousands of financial instruments, optimizing return for given goals of risk, diversification and ESG scoring.

Companies using IQ-Extreme

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